Small-Cap Stocks Finally Turning Around | Business and Finance News

Small-cap stocks are finally turning the corner after years of underperformance, fueled by a surge in AI-driven earnings growth and a renewed investor appetite for value. The iShares Russell 2000 ETF is already outpacing the S&P 500 ETF by nearly 9%, and small-cap value—especially via the Vanguard Small-Cap Value ETF—is poised to shine even more, trading at a much cheaper 14x forward P/E versus the S&P’s 20x. With earnings projected to jump 18% in 2026 and again in 2027, small caps could finally outpace large caps for the first time in years. While some are still unprofitable, the AI boom is strengthening fundamentals—and these undervalued stocks may be the best bet when the economy rebounds. Listen in comfort:Get a discount on a Soli Pillow: http://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/1f307eaa219a2cbb